Renminbi Internationalisation Will Be Guided by the Market, Regulators Must Reduce Cross-border Restrictions: Chinese Central Bank Head

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The governor of the People’s Bank of China (PBOC) has highlighted the key role of market forces in broader efforts to expedite the use of the Chinese currency abroad.

Yi Gang (易纲) said that “internationalisation of the renminbi must firmly uphold guidance by the market,” and that “regulators should reduce their restrictions on cross-border usage of the renminbi” as well as “abide by natural (processes).”

Yi made the remarks on 24 October at the 2nd Bund Financial Summit held in Shanghai.

The Chinese central bank governor also said that in just the past two years China had announced over 50 measures to further open up the financial sector, which had increased the supply of financial services by attracting institutions, businesses and products, as well as expedited improvements to regulatory systems.

Yi Gang’s remarks arrive just as China steps up testing of the digital renminbi, which many experts believe will expedite the use of the Chinese currency for cross-border transactions, particularly with Belt and Road-affiliated nations.

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